Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, 3-D movie technologies company RealD
With that in mind, let's take a closer look at RealD's business and see what CAPS investors are saying about the stock right now.
|Headquarters (founded)||Beverly Hills, Calif. (2003)|
|Market Cap||$1.3 billion|
|Trailing-12-Month Revenue||$215.44 million|
Co-founder/CEO Michael Lewis
COO Andrew Skarupa
|Operating Margin (average, past 3 years)||(24.4%)|
|Cash/Debt||$54.25 million / $3.88 million|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 43% of the 67 members who have rated RealD believe the stock will underperform the S&P 500 going forward. These bears include don1941t and All-Star bigcat1969, who is ranked in the top 5% of our community.
Just two weeks ago, don1941t tapped RealD as a rather low-grade selection: "I've been to both IMAX-3d and RealD showings. No comparison between the image quality. As economy improves I expect people to go for the best experience."
While RealD is certainly making a name for itself in consumer electronics, our community can't seem to get over its inferior position in theater, negative margins, and seemingly steep valuation. Currently, RealD even trades at a clear forward P/E (39.4) premium to listed rivals Dolby (21.3), IMAX (24.2), and NVIDIA (27.9), as well as traditional movie chains like Regal Entertainment
CAPS All-Star bigcat1969 elaborates on the bear case:
3D, smell-o-vision, pick your own ending, electrically shock the patron and other ideas have come and gone as fads. Only things that added to everyone's experience such as sound, surround sound, color and clearer picture have stayed and thrived. This version of 3D can't be used by everyone and may leave many of those who can use the tech with problems if they use it for extended periods of time. Hardly a broad based solution.
What do you think about RealD, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dolby and NVIDIA are Motley Fool Stock Advisor selections. IMAX is a Rule Breakers recommendation. Try any of our Foolish newsletter services free for 30 days.
We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.